Summary by Futu AI
SQM's Board of Directors has approved an updated policy governing transactions with related parties on November 11, 2024. The policy establishes transaction limits of either 1% of company assets or 10% of total revenues from the previous fiscal year, whichever is lower. The framework covers transactions between SQM and its subsidiaries across over 110 countries.Key provisions include authorization for raw material sales up to 10% of previous year's revenues, working capital financing up to 20% of revenues, and specific limits for transactions with shared-director companies, including a $20 million cap for technology services. The policy implements robust control mechanisms, with the Compliance Officer overseeing operations and reporting to the Directors' Committee.The updated policy mandates semi-annual reporting of related-party transactions on SQM's website and establishes simplified procedures for transactions between entities where SQM holds at least 95% ownership. Transactions exceeding 3,000 UF annually with directors and senior executives require additional scrutiny.
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